Markets · · 2 min read
Editor: Bohdan S.
Berkshire shares hit highest since Buffett’s exit news, 1.4% off a record
While tech stocks slid, Berkshire Hathaway climbed back to within 1.4% of its all-time high, helped by its cash pile, oil and a surprise bet on Bending Spoons.
The short answer
Berkshire Hathaway shares closed Friday at their highest since Warren Buffett said in May 2025 that he would step down as CEO, CNBC reported. Class B shares ended at $532.02, 1.4% below their record. Investors appear to be rewarding Berkshire's big cash pile, its energy holdings and new bets under CEO Greg Abel.
What happened
Berkshire's Class A shares closed Friday at $798,000 and its Class B shares at $532.02, each about 1.4% below their all-time closing highs, according to CNBC. That was their best level since the May 2025 annual meeting, when Buffett announced plans to hand over the CEO role at the end of that year. The shares then fell more than 14% over three months as investors worried a so-called Buffett premium was fading. A 10-session winning streak that added 5% ended Thursday, but the stock rebounded more than 1% on Friday as wider markets sold off.
What it means
Several separate forces are lifting Berkshire at once. The first is cash. Berkshire holds roughly $360 billion, and higher short-term interest rates mean that money earns more, according to Keefe, Bruyette & Woods analyst Meyer Shields. A quiet hurricane season has also helped its insurance businesses, which pay out when storms cause damage.
The second is oil. Berkshire owns a $19 billion stake in Chevron, which closed at an all-time high on Friday after rising almost 36% since the start of July. Its energy subsidiaries benefit too. Coca-Cola, a $37.6 billion holding, also hit a record.
The third is a change in taste among investors. As money moves away from AI and tech names, steadier old-economy companies look more appealing. Berkshire's Class B shares have closed almost two-thirds of the gap they had versus the S&P 500 on June 1 and now trail the index by 6.0 percentage points this year.
Then there is Bending Spoons. On Wednesday the Italian tech firm, which buys and overhauls struggling internet businesses such as Evernote, Vimeo and Airtable, said Berkshire would invest a further $330 million by buying 10 million new shares at $33 each, raising its stake to 4%. The release also showed Berkshire had put $600 million into the company's July IPO. Bending Spoons shares jumped 41% that day and closed Friday at $47.07. For a company known for value investing, it is an unusual bet on a highly valued tech stock, and it suggests Abel is willing to put more cash to work.
The bull case
Berkshire offers exposure to insurance, energy, railroads and consumer brands, plus a huge cash buffer that earns more when rates are high. That mix can hold up when tech stocks stumble. New investments in Alphabet and Bending Spoons, along with buybacks, show management is willing to deploy capital, which some analysts see as a positive for long-term holders.
The bear case
Some of the gains depend on conditions that can reverse: high oil prices, high interest rates and a mild hurricane season. A rotation back into tech could leave Berkshire lagging again, as it did earlier this year. The Bending Spoons stake is a richly valued tech bet that has already given back part of its jump, and the strategy behind it is unproven.
Why it matters
For investors
Berkshire's rise reflects a broader move toward energy, consumer staples and financial stocks as investors trim AI exposure. Chevron, Coca-Cola and Bending Spoons are the holdings most visibly tied to the latest gains.
The wider context
Many people own Berkshire through index funds or directly. Its recovery shows how diversified, cash-rich companies can steady a portfolio when popular growth stocks fall.
Market impact
| Asset (ticker) | Possible move | Timeframe | Why |
|---|---|---|---|
| Berkshire Hathaway Class B (BRK.B) | ↑ Up | Short term | Shares sit 1.4% below a record as investors favor cash-rich old-economy firms. |
| Bending Spoons (BSP) | ↔ Unclear | Short term | Berkshire's stake lifted the stock, but part of the jump has already faded. |
| Chevron (CVX) | ↑ Up | Short term | Closed at a record as oil prices climb, boosting Berkshire's $19 billion stake. |
The FinPrism newsroom's view of how these figures could move, as of . It is general news commentary, not a recommendation to buy, sell or hold anything.
Frequently asked questions
Why are Berkshire Hathaway shares rising?
Analysts point to Berkshire's roughly $360 billion cash pile earning more at higher interest rates, a quiet hurricane season for its insurers, record highs at holdings such as Chevron and Coca-Cola, and investors rotating out of AI and tech stocks into steadier companies.
How close is Berkshire stock to its all-time high?
Both share classes closed Friday about 1.4% below their record closing highs, CNBC reported. Class A ended at $798,000 against a record of $809,350, and Class B at $532.02 against $539.80. That is their best level since May 2025.
How much has Berkshire invested in Bending Spoons?
Berkshire invested $600 million at Bending Spoons' July IPO and agreed this week to buy 10 million new shares at $33 each, or about $330 million, according to the company. That brings Berkshire's stake to 4%.
Sources: CNBC, CNBC, Reuters via Capital.com
How this was made: written with AI assistance from the sources listed above, following our editorial standards.
